The Newport Beach office buildings that long have served as the headquarters of Downey Financial Corp. are no longer up for sale, according to the company and real estate sources.
The struggling savings and loan operator had put its headquarters on the market in late September in an attempt to raise cash amid the ongoing financial crisis.
The building being taken off the market was a matter of “timing” amid the credit crunch, a Downey spokeswoman said.
She didn’t offer more details.
The property is part of the Bayview Corporate Center, a midrise office campus that sits near Jamboree Road and South Bristol Street.
Several bids for the 320,000-square-foot property were said to have been made, according to real estate sources.
The prices being offered were said to be below the $115 million price Downey had been seeking.
The Office of Thrift Supervision, the regulatory agency that oversees savings and loans, in early September told Downey it needed to sell assets to increase its minimum capital requirements and improve its financial strength.
Along with asset sales, Downey also could sell stock to raise the money. The savings and loan could look to unload the company, although finding a buyer for its risky mortgage portfolio could be difficult, analysts have speculated.
It has been estimated that Downey would have to raise $250 million to $300 million to meet the regulator’s capital requirements through next year.
Downey officials said in September they would “diligently explore a broad range of strategic alternatives” to meet the Office of Thrift Supervision’s demands.
